After sub/unsub federal student loans, what is best option for graduate school?
Asked by legaleye2005Going to law school... Just applied for sub/unsub loans with fed gov't, but I need more money for school... Grad plus loan is fixed 8.5% but is going with a private loan better with a bank? Even if I choose grad plus loan, which lender is the best to choose? My school is giving me two options: One of them is Chase/JP Morgan, I forgot the other...
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Answered by FinAidGrrl
Hands down, Grad PLUS loans are the best option because * the rate is fixed * the loans are insured by the federal government * if you want/need to, you can consolidate your PLUS loans with your Stafford & Perkins Loans * in addition to in-school deferment, you can also apply for economic hardship deferment when you're having trouble making payments. * most lenders offer additional repayment incentives such as "X% off of your interest rate after Z number of on-time payments." Private loans sometimes have benefits, but they're rarely this good. It's important to know that your school is not "giving you" two options; they are simply *recommending* those two. As a borrower, you have the option to select whichever lender you want. While I trust that your school has made an educated decision, you could also take a look at the benefits offered by these PLUS loan lenders: College Board AFC Sallie Mae Citibank Bank of America Everyone has different benefits; choose one that appeals to you.
Hands down, Grad PLUS loans are the best option because * the rate is fixed * the loans are insured by the federal government * if you want/need to, you can consolidate your PLUS loans with your Stafford & Perkins Loans * in addition to in-school deferment, you can also apply for economic hardship deferment when you're having trouble making payments. * most lenders offer additional repayment incentives such as "X% off of your interest rate after Z number of on-time payments." Private loans sometimes have benefits, but they're rarely this good. It's important to know that your school is not "giving you" two options; they are simply *recommending* those two. As a borrower, you have the option to select whichever lender you want. While I trust that your school has made an educated decision, you could also take a look at the benefits offered by these PLUS loan lenders: College Board AFC Sallie Mae Citibank Bank of America Everyone has different benefits; choose one that appeals to you.
